Gold hits fresh record high over trade war impact fears

[CharlieH]

 

Gold prices have soared to a new record, hitting $3,357.40 (£2,540) per ounce, as investors seek safety amid US-China trade war tensions. The precious metal has surged by about 30% since the year began, reflecting growing economic uncertainty.

 

Federal Reserve Chair Jerome Powell warned of slower US growth and rising consumer prices due to Trump's tariffs. His comments follow market turmoil from new import taxes and escalating trade tensions between the two giants.

 

Experts describe gold as being in "full lifeboat mode" as faith in politically influenced assets dwindles. The rally compares to the Iranian Revolution era when prices skyrocketed. Investors see gold as a hedge against inflation and government unpredictability, spurred by Trump's aggressive tariff policies.

 

The US has imposed hefty tariffs on China, prompting retaliations, and there's growing unease over potential new tariffs on other nations. The administration claims these measures will boost US manufacturing, job creation, and tax revenue, yet fears of inflation persist, driving investors to gold as a safe haven.

 

Based on a BBC Article

[Gsxrnz]

Up 50% since I bought physical, not that long ago. No complaints. If it comes down to 3K I'll take profit and expect to re-enter again. But at the moment I'm moderately bullish.

 

Very few understand that the upside for gold is potentially unlimited.  While the upside for T-Bills is restricted to its face value at maturity, ergo 100%. And if you can double your money on a T-Bill, the money you doubled will probably not buy you a cup of coffee. 

[swissie]

Oh no, not again. Tabloid Newspapers celebrating the price of Gold.

 

Let's look at the situation in detail:

- Most physical buyers of Gold reside in India/China. They have stopped buying as the price is too high.
- Central Banks have reduced their buying as the price is too high.

 

Currently private investors buying Gold ETF's, supporting the price. Otherwise nothing would support the price.

 

All precious metals are traded in US Dollars. With a declining US Dollar how have your Gold holdings fared in your "home currency"?

 

To be sure: To buy precious metals also means to buy the US Dollar. Making you not only a Gold Investor but also a "currency speculator"- Like it or not. As long as your "home currency" is not the US Dollar.

 

[Cameroni]

Canada, alone among nations decided not to build any gold reserves.

 

Greatest financial blunder of all time?

[connda]

Over 50k THB / baht-weight.  And this is probably still affordable.

[Harrisfan]

Go down soon

[Harrisfan]

5th wave on a weekly.

[Airalee]

14 minutes ago, swissie said:

Central Banks have reduced their buying as the price is too high.

No, they haven’t.  China resumed buying this year.  You were already informed of this in another thread.   Why have you conveniently forgotten?

 

15 minutes ago, swissie said:

All precious metals are traded in US Dollars. With a declining US Dollar how have your Gold holdings fared in your "home currency"?

Oh dear.  You should really do your homework.

 

 

[CallumWK]

26 minutes ago, swissie said:

Let's look at the situation in detail:

- Most physical buyers of Gold reside in India/China. They have stopped buying as the price is too high.
- Central Banks have reduced their buying as the price is too high.

 

Our wannabe investor with a wealth of no idea about investing roars his head again.

 

26 minutes ago, swissie said:

All precious metals are traded in US Dollars. With a declining US Dollar how have your Gold holdings fared in your "home currency"?

 

I bought in January at 44.260 Baht, I bought more 2 weeks ago at 48.630 baht, right now I get 52.210.if I sell

[CallumWK]

20 minutes ago, Harrisfan said:

Go down soon

 

Sparktrader has spoken, take heed.

[connda]

37 minutes ago, Cameroni said:

Canada, alone among nations decided not to build any gold reserves.

 

Greatest financial blunder of all time?

I'm sure there were people who made financial killings by that move which shags the average Canadian.  Connected people got very rich no doubt. 

[kwonitoy]

46 minutes ago, Cameroni said:

Canada, alone among nations decided not to build any gold reserves.

 

Greatest financial blunder of all time?

 

not really, we're a vast country full of minerals

Our reserves are in the ground

 

n 2023, Canada's gold production reached 198 metric tons, a 2% increase from the previous year and 31% higher than in 2014. Canada is the fourth-largest gold producer in the world, with over 6% of global production in 2022. Gold production in Canada has seen a steady increase over the past decade, with some slight fluctuations in the years 2019, 2020, and 2022. 

 

Key Points:

• Production Trend: Steady increase over the past decade.

• Significant Provinces: Ontario and Quebec contribute the majority of Canadian gold production. 

• 2023 Production: 198 metric tons.
• Global Rank: 4th largest producer.

[Cameroni]

19 minutes ago, kwonitoy said:

Our reserves are in the ground

 

Those are not "your" reserves though, but rather the property of the mining companies. Other nations built up gigantic gold reserves to benefit their peoples. Candada decided not to, however. Gold production by private companies is not the same as gold reserves owned by the state for the benefit of the people. 

 

[jas007]

2 hours ago, Airalee said:

No, they haven’t.  China resumed buying this year.  You were already informed of this in another thread.   Why have you conveniently forgotten?

 

Oh dear.  You should really do your homework.

 

 

Almost 90% of the world's currency transactions are performed with the US dollar as a "delivery vehicle,"  Foreign currency gos in, is converted to US dollars for the transaction, and the transaction is completed. So like it or not, when you're buying fold in a home currency that's not the US dollar, then, like it or not, you're supporting the dollar.  

[Airalee]

5 hours ago, jas007 said:

Almost 90% of the world's currency transactions are performed with the US dollar as a "delivery vehicle,"  Foreign currency gos in, is converted to US dollars for the transaction, and the transaction is completed. So like it or not, when you're buying fold in a home currency that's not the US dollar, then, like it or not, you're supporting the dollar.  

Your reply makes no sense.

 

Some moron said “how have your gold holdings fared in your “home currency””

 

And I showed her that it has fared quite well in most major currencies.   Are you saying it hasn’t?

 

Saying that “buying gold supports 5e dollar” is wrong.  In fact, it is more of a vote against the dollar.   But hey….if you enjoy coming to the defense of morons…you do you.  Birds if a feather and all.

[jas007]

2 hours ago, Airalee said:

Your reply makes no sense.

 

Some moron said “how have your gold holdings fared in your “home currency””

 

And I showed her that it has fared quite well in most major currencies.   Are you saying it hasn’t?

 

Saying that “buying gold supports 5e dollar” is wrong.  In fact, it is more of a vote against the dollar.   But hey….if you enjoy coming to the defense of morons…you do you.  Birds if a feather and all.

My point was that if your home currency is not the US dollar and you want to convert that currency to some other currency that's also not the US dollar, then, like it or not, you're using the dollar as a necessary part of the transaction and, as such, you're supporting the dollar and in the process, weakening the price of gold in your home currency.  So yes, you may be ahead of the game once the transaction is completed and at some later date, but at the same time, you've helped support the dollar.  

[CallumWK]

3 minutes ago, jas007 said:

My point was that if your home currency is not the US dollar and you want to convert that currency to some other currency that's also not the US dollar, then, like it or not, you're using the dollar as a necessary part of the transaction and, as such, you're supporting the dollar and in the process, weakening the price of gold in your home currency.  So yes, you may be ahead of the game once the transaction is completed and at some later date, but at the same time, you've helped support the dollar.  

 

Nope, you are selling dollars when buying gold. How does that support the dollar

[WorriedNoodle]

23 hours ago, Gsxrnz said:

Very few understand that the upside for gold is potentially unlimited.

Given the potential for alternative assets like cryptocurrencies to gain traction, and considering gold's value is largely based on perceived value and historical significance, the idea of unlimited upside for gold might be less likely.

Gold's price could still be influenced by various market and economic factors, but the notion of unlimited growth might be tempered by:

 

    Competition from alternative assets
    Changes in investor sentiment
    Shifts in global economic conditions

 

A more nuanced view might be that gold's price has potential for growth, but it's not necessarily unlimited.

[hotsun]

2 minutes ago, WorriedNoodle said:

Given the potential for alternative assets like cryptocurrencies to gain traction, and considering gold's value is largely based on perceived value and historical significance, the idea of unlimited upside for gold might be less likely.

Gold's price could still be influenced by various market and economic factors, but the notion of unlimited growth might be tempered by:

 

    Competition from alternative assets
    Changes in investor sentiment
    Shifts in global economic conditions

 

A more nuanced view might be that gold's price has potential for growth, but it's not necessarily unlimited.

Gold, not finite. Only market for it is the elderly

[spidermike007]

13 hours ago, kwonitoy said:

 

not really, we're a vast country full of minerals

Our reserves are in the ground

 

n 2023, Canada's gold production reached 198 metric tons, a 2% increase from the previous year and 31% higher than in 2014. Canada is the fourth-largest gold producer in the world, with over 6% of global production in 2022. Gold production in Canada has seen a steady increase over the past decade, with some slight fluctuations in the years 2019, 2020, and 2022. 

 

Key Points:

• Production Trend: Steady increase over the past decade.

• Significant Provinces: Ontario and Quebec contribute the majority of Canadian gold production. 

• 2023 Production: 198 metric tons.
• Global Rank: 4th largest producer.

Well, those kind of stats are likely something that UNFPA's (ultra nationalist fake patriot Americans) are not going to want to hear, as they have to show fealty to their master by showing a dislike of Canada, despite the fact that Canada has been a loyal and faithful friend and ally to the US for at least a century now. 

[Cameroni]

Fed will not reduce interest rates in June. This will strengthen the dollar. So there may be  dip in gold. A perfect opportunity to buy, to jump onto the 3500 train.

[CallumWK]

4 minutes ago, Cameroni said:

Fed will not reduce interest rates in June. This will strengthen the dollar. So there may be  dip in gold. A perfect opportunity to buy, to jump onto the 3500 train.

 

It's known for weeks already that the fed will be hesitant to reduce interest rates, but the dollar keeps tanking as long as Trump keeps bullying his trade partners

 

[Cameroni]

2 minutes ago, CallumWK said:

 

It's known for weeks already that the fed will be hesitant to reduce interest rates, but the dollar keeps tanking as long as Trump keeps bullying his trade partners

 

 

Powell has turned hawkish, so it is pretty clear he will not reduce interest rates in June. This should strengthen the dollar. Particularly if China indicates they're open to negotiate a deal. Tariffs are played out now.

 

There has to be a dip, but Gold will keep going to 3500 and probably beyond, so buying the dip is the way to go.

[Airalee]

13 minutes ago, spidermike007 said:

Well, those kind of stats are likely something that UNFPA's (ultra nationalist fake patriot Americans) are not going to want to hear, as they have to show fealty to their master by showing a dislike of Canada, despite the fact that Canada has been a loyal and faithful friend and ally to the US for at least a century now. 

And who owns the rights to that gold?  Large gold miners that are publicly traded.

 

Who owns the largest stakes in those miners?

 

Institutional owners.

 

And which country holds the majority of that institutional ownership?

 

Not Canada.
 

[black tabby12345]

Gold price record high?

And USD looks like declining.

 

USD THB Historical Data - Investing.com

[Peterphuket]

20 hours ago, swissie said:

Oh no, not again. Tabloid Newspapers celebrating the price of Gold.

 

Let's look at the situation in detail:

- Most physical buyers of Gold reside in India/China. They have stopped buying as the price is too high.
- Central Banks have reduced their buying as the price is too high.

 

Currently private investors buying Gold ETF's, supporting the price. Otherwise nothing would support the price.

 

All precious metals are traded in US Dollars. With a declining US Dollar how have your Gold holdings fared in your "home currency"?

 

To be sure: To buy precious metals also means to buy the US Dollar. Making you not only a Gold Investor but also a "currency speculator"- Like it or not. As long as your "home currency" is not the US Dollar.

 

More than 10 years ago, I started buying 99.9% physical gold, in addition to Thai gold, concerns Thai gold from 25,000 Bath to now more than 52,000 Thb.
As things stand I don't think I did wrong, for that reason I don't understand your comment very well.
Yes, indeed, NOW you should not go and buy it....

Needless to say, when I first came to Thailand about 30 years ago, Thai gold was 5000 Thb/Bath.

[Peterphuket]

20 hours ago, Airalee said:

No, they haven’t.  China resumed buying this year.  You were already informed of this in another thread.   Why have you conveniently forgotten?

 

Oh dear.  You should really do your homework.

 

 

You would expect a bit more knowledge from a Swiss, wouldn't you?

[Keeps]

20 hours ago, Cameroni said:

Canada, alone among nations decided not to build any gold reserves.

 

Greatest financial blunder of all time?

No, that would be Gordon Brown in 1999 when UK chancellor of the exchequer. He sold 395 tonnes of gold when the market was at a multi-decade low. The reasoning behind this was to 'diversify' the UK asset base. Ended up costing the UK billions of pounds. 

[CallumWK]

16 minutes ago, Peterphuket said:

Yes, indeed, NOW you should not go and buy it..

 

And why not?

If you applied the same logic every time it reaches record highs, nobody would buy gold.

As you can see from my post, I bought twice this year, each time at a record high, yet I have 20% profit on the first trance, and almost 10% on the second trance which was only 2 weeks ago.

In my view it will gain another 10% before the end of this year.

[Cameroni]

8 minutes ago, Keeps said:

No, that would be Gordon Brown in 1999 when UK chancellor of the exchequer. He sold 395 tonnes of gold when the market was at a multi-decade low. The reasoning behind this was to 'diversify' the UK asset base. Ended up costing the UK billions of pounds. 

 

The whole ERM debacle is certainly a contender from Britain as well.